How to Gift a Car in Mississauga

Gifting a car to a loved one is an incredibly generous gesture, whether it’s for your child’s graduation, a spouse’s birthday or just helping out a parent in need. But in Ontario especially in Mississauga gifting a vehicle involves a few legal and financial steps. Miss one and it could turn your thoughtful gift into a stressful ordeal. That’s why The Car Boys have created this complete step-by-step guide to walk you through it.

Who Qualifies for a Tax-Exempt Car Gift in Ontario

Not every gift is tax free. Know the eligibility.

Retail Sales Tax (RST) Exempt Family Members

• Spouse or common law partner
• Parent or step parent
• Child or step child
• Sibling or half/adopted sibling
• Grandparent or grandchild
• In laws (mother father son daughter)

Non Eligible Individuals

If you’re gifting a car to cousins, friends, uncles, aunts or anyone else not in the list above, Retail Sales Tax will apply based on the car’s fair market value.

Step-by-Step: How to Gift a Car in Mississauga, Ontario

Step 1 – Ensure the Vehicle is Paid Off

• No liens should be active.
• Ask for a lien free certificate or show a zero balance statement from the lender.

Step 2 – Prepare the Vehicle

• Get it cleaned inside and out.
• Fix any maintenance issues.
• Consider including a new oil change
• or detailing for added gesture.

Step 3 – Gather All Required Documents

Make sure these are ready:

• Vehicle Ownership Permit (Green Slip)
• Safety Standards Certificate (not needed for spouse)
• A notarized declaration confirming the vehicle is a family gift is required.
• Valid Driver’s License (both parties)
• Insurance Proof in Recipient’s Name
• Plate Transfer Declaration (if transferring plates)

Plate Transfers – What’s Allowed

• License plates may be reassigned when transferring a vehicle to a spouse, parent or child.
• Plate transfers are not allowed when gifting a vehicle to siblings, friends or extended family members like cousins. They must get new plates.

The ServiceOntario Process (What to Expect)

Step 1 – Visit ServiceOntario Together

Both the giver and the recipient must visit a Service Ontario centre in person to complete the vehicle gift transfer process. This ensures all required documents are submitted correctly and the ownership change is officially recorded.

Step 2 – Submit Forms and ID

Bring everything:

• A signed declaration must be completed in the presence of a notary public.
• Insurance in recipient’s name
• Safety certificate
• Driver’s license
• Ownership permit

Step 3 – Finalize the Transfer

• Transfer is processed on the spot.
• Plates are either transferred or newly issued.
• New ownership is recorded.
  

Insurance Tips for the Gifted Car

• Before completing the transfer, the recipient is required to have valid auto insurance in place.
• If they already have a policy they must notify the insurer within 14 days.
• First time owners should consider comprehensive coverage for broader protection.
• Need help budgeting your monthly expenses? Use our finance calculator to estimate payments before transferring ownership.

Taxes – Do You Need to Pay?

No Retail Sales Tax (RST) If:

• The vehicle is being transferred to an eligible relative under Ontario’s family gifting rules.
• Proper documentation must be submitted (especially the sworn statement).

Retail Sales Tax (RST) Will Apply If:

• The car is gifted to a non-qualified person.
• No sworn statement is submitted.
  Tax is calculated based on the car’s market value.

Optional But Recommended Documents

• Bill of Sale (marked as gift): Optional but good for records
• Drive Clean Certificate: Not mandatory unless specifically required
• Odometer Disclosure: Include in Bill of Sale or a separate note

Common Mistakes to Avoid

• Forgetting to notarize the sworn statement
• Showing up without insurance
• Failing to remove plates when the receiver doesn’t meet eligibility criteria
• Not paying off loan or lien beforehand. If you’re unsure how to clear the balance before gifting, explore our finance options for support.

Conclusion

Gifting a car in Mississauga, Ontario is a heartwarming gesture but it comes with responsibilities. From confirming tax exemptions to collecting and notarizing the right documents The Car Boys are here to simplify your process. Whether you’re the one giving or receiving, doing it the legal way ensures that the joy of giving stays stress-free. If you’re planning to gift your current vehicle and upgrade to a used car check out our latest inventory. Ready to transfer your car as a gift? Contact The Car Boys today to get started.

FAQs on Gift a Car in Mississauga

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